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TMI Blog2012 (7) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... how that an amount of Rs. 84,15,144/- pertains to insulating paper, which included the imported stock (72,056 KGs valued Rs. 81,79,352), thus no basis on which AO came to the conclusion that the stock was not shown in closing stock - in favour of assessee. - IT APPEAL NO. 7080 (MUM.) OF 2010 - - - Dated:- 11-7-2012 - D.K. AGARWAL, B. RAMAKOTAIAH, JJ. ORDER B. Ramakotaiah, Accountant Member This is a revenue appeal against the order of CIT (A)-20, Mumbai dated 5.8.2010 in which revenue raised the following ground. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT (A) has not erred in deleting the disallowance of Rs. 35,36,234/- representing the value of unproved purchases of Insulated Kraft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition of the AO is accepted then once the purchase were taken into account and charged to the P L Account the natural corollary would be that they would have either shown as sold or lying in stock. There cannot be a third possibility like theft, destruction, etc in the facts of the case. The AO has ignored to appreciate these facts. He cannot disallow the purchases without reducing either the sales or the stock by a matching sum. In either case there will not be impact on profit. I, therefore, delete the addition made of Rs. 35,36,000/-." 3. The Ld DR relied on the orders of the AO whereas the Ld Counsel referred to the facts as taken before the Ld CIT (A) and also the paper book filed running to pages 1 to 60. 4. We have examined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere to consider that assessee had placed order for purchase of goods in FY 2004-2005, the evidence indicate that the quantity of goods were imported vide Invoice No. 7502187 dated 16.1.2006 for a value of Rs. 11,87,000/-, Invoice No.0036326 dated 23.01.2006 for value of Rs.11,72,000/- and Invoice No.0076965 dated 3.3.2006 valuing Rs. 11,77,000/-. There is evidence that payments against these CIF value were made by the bankers M/s. UCO Bank. Vide the letter dated 12.12.2008, the assessee informed the Income Tax Officer that the stock was accounted for in the closing stock. This letter was acknowledged by the ITO-9(3)(1), Mumbai dated 12.12.2008 itself. We are of the opinion that the Assessing Officer has wrongly considered the facts availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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